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Kenya’s retail sector contracted by 3.1% in Q4 2023 as consumers cut discretionary spending due to high food and fuel prices. Supermarkets reported declining foot traffic, with shoppers opting for informal kiosks offering cheaper goods. Majid Al Futtaim (Carrefour) and Tuskys Holdings noted reduced sales in non-essential categories. The Kenya National Bureau of Statistics linked the trend to inflation that averaged 7.9% in 2023. Retailers are responding with loyalty programs, private labels, and delivery partnerships. However, rising rental costs and insecurity in CBDs add pressure. Industry body KAM warns that job losses could follow if household purchasing power doesn’t recover in 2024.